Interior Ministry announces €780 million budget for 2027 focusing on housing

On November 9, 2026, Cypriot Minister of Interior Constantinos Ioannou presented the Ministry's 2027 budget of €780 million to the House Finance and Budget Committee. This budget, representing a €1.5 million increase from 2026, focuses on housing policy, support for refugees, local government strengthening, and rural revitalization. Development expenditures are set at €263.5 million, accounting for approximately 33.1% of the total, while the government aims to boost the housing supply to combat high rental costs.

Key housing initiatives include a €70 million allocation for 2027, which supports both the demand and supply sides of the property market. Significant programs include the assistance scheme for young couples under 41, which has already benefited 700 individuals, and the revitalization plans for mountain and border areas. Furthermore, a €70 million project for the construction of 460 housing units on state land in Nicosia, Limassol, Larnaca, and Paphos is planned. The ministry also reported that rent prices are beginning to stabilize across provinces.

Looking ahead, the government plans to relaunch the successful youth housing grant scheme in 2027. Officials are currently evaluating the implementation of existing projects, such as the 'ktizo' plan, while addressing legislative concerns regarding housing criteria and the management of Turkish Cypriot properties.